? NZD/CAD Trying to Regain the Bullish Momentum Again ?

3 min read
Adarwish

adarwish

Author

Hi traders,

NZD/CAD presented a bearish momentum pullback, which is actually part of wave 4. From my point of view, the pair now is trying to regain the bullish momentum as part of a wave 5. Today we will check the currency pair from a wave perspective to figure the best available opportunity.

This article will discuss the expected scenarios for the pair during the coming days using wave pattern, support, and resistance and SWAT software.

NZD/CAD Bouncing from 38.2 % Fibonacci

NZD/CAD pair is in a clear uptrend as shown in the below chart… However, the pair had a pullback correction which is part of the 4th wave. The pair is trying to regain the bullish momentum again after it bounced from the 38.2% Fibonacci level. I expect that the bullish momentum of wave 5 could start soon because of the below reasons:

  1. There is bullish engulfing twins candlestick pattern at Fibonacci level.
  2. There is an evening start candlestick pattern.
  3. Wave 5 often goes beyond wave 3, so our targets are the previous top and -27.2 %.

So we are looking for buy opportunities only to trade the bullish momentum of wave 5. However trades should wait for some confirmations to develop before trading this wave, and I will discuss in the next paragraph the best entry points by using SWAT software.

NZD/CAD 4 Hours Chart

Now its time to use SWAT software to determine the most appropriate entry zones which match the expected wave pattern.

From the below chart, we can see that price is starting to move up but still we need to see some developments before setting our position:

  1. The price broke above the 21 EMA but failed to stay above it: price needs to break the 21 EMA again with a strong candle.
  2. Our target will be the Wizz levels 3 and 4.
  3. Note that this is a slow pair so traders should be patient as it will take time to reach our targets.

Good trading,

Ahmed
https://twitter.com/Adarwiah2001

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